Judge Puts $24M Sallie Mae Autocall Deal On Hold

Law360, New York (January 12, 2012, 2:57 PM EST) -- A Washington federal judge refused to approve a $24.2 million preliminary class settlement Tuesday in a suit accusing Sallie Mae Inc. of autodialing borrowers' cellphones, questioning whether the deal could require borrowers to give the company their landline numbers.

Judith Harper, an intervenor plaintiff, contended during oral arguments that the settlement cannot require class members to list noncellphone numbers that Sallie Mae can put on file in place of their cellphone numbers, as the Fair Debt Collection Practice Act allows consumers to ask debt collectors to...
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